What We Learned at Money 20/20

We had the honor and privilege recently to attend Money20/20, the leading platform for content, sales, and connections for the global money ecosystem. Fans of the Fintech Growth Talk Podcast may recall that we recently published an interview with Money20/20 president Tracy Davies. That was the spark to many other conversations with some of today’s top Fintech minds and visionaries.

And our conversations were nothing less than eye-opening. There’s almost always something interesting happening in Fintech as the industry continues to evolve at a breakneck pace. But what we’re finding is that the smartest players are staying ahead of the change curve.

Here are some highlights of our conversations, including some key insights from each participant. (NOTE: Speakers mentioned in alphabetical order by last name.)

Sheila Collins, Senior Advisor, AARP Innovation Labs

When we think of cutting-edge innovation in Fintech, we might not think about AARP. But with shifting demographics, there will be more people over 50 than under 18 by 2034. In fact, there are 10,000 people turning 65 every day. People are living longer and this is posing a wide variety of challenges that many startups are racing to tackle.

That’s where the AARP Innovation Labs come in, empowering people to choose how they live as they age, by identifying technology that supports longevity. For AARP, Fintech doesn’t operate in a bubble when it comes to aging, touching everything from healthcare to estate planning, from savings planning to caregiving.

Dubbed “agetech,” these solutions address people in one of four categories (though they certainly overlap):

· Older adults

· Caregivers

· Intergenerational connections

· Future older adults

By working with startups to bring their best solutions to life, AARP Innovation Labs is helping everyone live their best life as they age.

Listen to the full interview with Sheila Collins here

Seth McGuire, Chief Revenue Officer, Galileo Financial Technologies

Understanding what customers want can be tricky, but it’s an absolute necessity for Fintechs. Especially if they want to push the envelope of what’s possible.

That’s the approach that Galileo Financial Technologies has taken, focusing on understanding the consumer journey and embedding that into their products. This empowers Galileo’s clients — other Fintechs and financial institutions — to build more flexibility into their products. This will be key in the coming years, says McGuire, when digital-first becomes the standard rather than the upstart.

In many ways, this is already here. Because although about 65 percent of consumers still use traditional banks, digital financial products tend to be more used in the context of individual needs, whether that was the intended use for the product or not. For example, some consumers who frequently use P2P apps for sending money to friends will park some funds there just to use at a later time. In that way, they’re serving as a sort of savings/checking account, even though that wasn’t the intended use.

In fact, how people keep their money appears to be changing. Whereas consumers traditionally held money in savings and checking, they’re using a wider range of digital services, including things like coffee shop applications.

At the root of this shift is how consumers identify value, and how digital products are delivering them in new and unique ways. Consumers are also using products that align with their personal values, emphasizing the need for Fintechs to develop a strong brand as well as their technology.

Listen to the full interview with Seth McGuire here

Francesca Rossi, AI Ethics Global Leader, IBM

Artificial intelligence (AI) is a key tool for Fintech firms to develop and deploy new digital products. Lending, insurance, fraud detection, and other key financial functions are all starting to rely on AI.

But how do you develop an AI that delivers not only accurate outputs but also outputs that are fair and transparent? That’s one of the main questions IBM’s Francesca Rossi asks in her role as AI Ethics Global Leader. Ultimately, AIs need to be trustworthy in how they operate, how they manage and secure data, and how they impact society in the long term. And trust has to be justified, says Rossi.

This is essential, particularly in a post-pandemic world where digitalization has dramatically accelerated. This trust also needs to come from the platform, both for consumers and for financial institutions using these technologies. According to Rossi, AIs must be transparent, fair, and explainable in order to meet compliance requirements and to maintain trust both internally at institutions and with external stakeholders.

Listen to the full interview with Francesca Rossi here

Richie Serna, CEO & Founder, Finix

The startup mantra used to be “Software is eating the world,” but today it’s more like “Payments are eating the world.” At least, that’s how Richie Serna sees it (and we happen to agree with him). Finix’s goal, according to Serna, is to “create the most accessible financial services ecosystem…[by] rebuilding the entire financial ecosystem in our banking industry, one API at a time.”

That is, payments are a huge part of nearly every software, platform, and startup being developed, regardless of industry. Even large businesses need payment solutions, says Serna, pointing to retailer Macy’s, which makes a significant percentage of their profits from their credit card business.

What’s more, payments are vastly becoming frictionless. Uber, Lyft, DoorDash, and so many others have smoothed out the experience of commercial transactions, making them almost invisible to the consumer experience. But it’s not only in mobile experiences, says Serna, citing ordering kiosks at restaurants. Additionally, it’s not only about consumers being able to make payments; it’s also about people being able to conduct transactions between each, as seen in the rise of services like Venmo.

Lastly, by creating a payments API ecosystem that anyone can tie into, Finix is working to boost better access to financial tools to minority-led startups with the goal of broadening access to financial tools for minorities and underbanked individuals. Additionally, they’re devoting a portion of their own funding to minority VCs and angel investors, with the aim of diversifying the wealth generated in the investor class.

It’s a bold, disruptive vision, but one that embodies what Fintech is all about.

Listen to the full interview with Richie Serna here